For anyone coming to this question recently: the answer has changed in Rails 3.2, because they've changed how they implement reload! Where in earlier version the irb commands were added as methods to Object, now they are added to IRB::ExtendCommandBundle to avoid polluting the global namespace.

if Kernel.const_defined?("Rails") then
require File.join(Rails.root,"config","environment")
require 'rails/console/app'
require 'rails/console/helpers'
Pry::RailsCommands.instance_methods.each do |name|
Pry::Commands.command name.to_s do
Class.new.extend(Pry::RailsCommands).send(name)
end
end
end

In any case, I think that's different than actually launching a rails console, which is where reload! comes from. I redefine IRB = Pry in my env-specific config file, which ensures a full console, and it all works like a charm.